Does Oneconnect have money to sustain growth?

Oneconnect Financial Investments Current are comparatively stable at the moment as compared to the past year. Oneconnect Financial reported Investments Current of 1.69 Billion in 2019. Investments Non Current is likely to grow to about 552.7 M in 2020, whereas Free Cash Flow is likely to drop (2 B) in 2020. The stock is currently undergoing an active upward rally. Today's short post will review Oneconnect Financial as your potential position. We will break down if private investors should continue to be optimistic in Oneconnect Financial outlook. Oneconnect Financial is somewhat reliable given 1 month investment horizon. Oneconnect Financial maintains Sharpe Ratio (i.e. Efficiency) of 0.22, which implies the firm had 0.22% of return per unit of risk over the last month. Our standpoint towards forecasting the risk of a stock is to use both market data as well as company specific technical data. We were able to break down and interpolate data for twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.51% are justified by taking the suggested risk. Use Oneconnect Financial semi deviation of 5.53, risk adjusted performance of 0.3657, and coefficient of variation of 511.8 to evaluate company specific risk that cannot be diversified away.
Published over a year ago
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Reviewed by Vlad Skutelnik

Oneconnect Financial holds a performance score of 15 on a scale of zero to a hundred. The company holds a Beta of -0.1516, which implies not very significant fluctuations relative to the market. Let's try to break down what Oneconnect's beta means in this case. As returns on the market increase, returns on owning Oneconnect Financial are expected to decrease at a much lower rate. During the bear market, Oneconnect Financial is likely to outperform the market. Although it is essential to pay attention to Oneconnect Financial current trending patterns, it is also good to be reasonable about what you can do with equity existing price patterns. Our philosophy towards forecasting future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Oneconnect Financial expected return of 1.51 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use Oneconnect Financial potential upside, and the relationship between the total risk alpha and kurtosis to analyze future returns on Oneconnect Financial.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Oneconnect Financial. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Oneconnect Financial

Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Oneconnect Financial's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Oneconnect Financial. Your research has to be compared to or analyzed against Oneconnect Financial's peers to derive any actionable benefits. When done correctly, Oneconnect Financial's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Oneconnect Financial.

How important is Oneconnect Financial's Liquidity

Oneconnect Financial financial leverage refers to using borrowed capital as a funding source to finance Oneconnect Financial Technology ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Oneconnect Financial financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Oneconnect Financial's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Oneconnect Financial's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Oneconnect Financial's total debt and its cash.

What is driving Oneconnect Financial Investor Appetite?

Oneconnect Financial preserves 7.03 b of current valuation. The entity reported previous year revenue of 2.06 B. Net Loss for the year was (1.79 B) with profit before overhead, payroll, taxes, and interest of 766.86 M. Oneconnect Financial Technology is displaying above-average volatility of 6.72 over the selected time horizon. Investors should scrutinize Oneconnect Financial Technology independently to ensure intended market timing strategies are aligned with expectations about Oneconnect Financial volatility.
Oneconnect Financial Free Cash Flow is decreasing over the last 4 years. The newest value of Oneconnect Financial Free Cash Flow is -1,964,721,474. Further, Oneconnect Financial Earnings Before Interest Taxes and Depreciation Amortization EBITDA is comparatively stable at the moment.

Oneconnect Financial has 93 percent likelihood to reset below $19.6 in August

Total risk alpha is down to 0.72 as of today. Oneconnect Financial Technology is displaying above-average volatility of 6.72 over the selected time horizon. Investors should scrutinize Oneconnect Financial Technology independently to ensure intended market timing strategies are aligned with expectations about Oneconnect Financial volatility.

The Current Takeaway on Oneconnect Financial Investment

Whereas many of the other players under software—application industry are still a bit expensive, Oneconnect Financial may offer a potential longer-term growth to private investors. To conclude, as of 9th of July 2020, we believe that Oneconnect Financial is currently overvalued with below average probability of distress in the next two years. Our up-to-date 30 days buy-hold-sell recommendation on the firm is Strong Sell. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to short some or all of your Oneconnect Financial holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Oneconnect Financial.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Oneconnect Financial Technology. Please refer to our Terms of Use for any information regarding our disclosure principles.

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